Tata Steel plans Rs 25,000cr capex

Tata Steel today announced an investment plan of up to Rs 25,000 crore over the next five years to become a 15 million tonne-capacity steel company.

"We are looking at an investment of between Rs 23,000-25,000 crore by 2010. The plans include expansion at the Jamshedpur plant and buildding new capacities in Orissa and Chhatisgarh," B Muthuraman, MD of Tata Steel, said today.

He also announced plans to acquire more steel companies in South-East Asia and China. "Discussions are on with some companies, and a final decision will be taken soon," he added.

Asked about the source of funds, Mutturaman said a significant part of the investment would come from internal resources. "With a debt-equity ratio of 0.4:1, the company has the leverage to raise funds from the market," he added.

He, however, said there was no immediate plan to borrow funds. "This will be decided as and when the time comes."